Blockchain.com sold assets to fill its exposure to Sanjian Capital of US $270 million

It is reported that Blockchain.com has been trying to sell assets to fill its exposure to Three Arrows Capital (3AC) of US $270 million. The spokesman said that its venture capital department BlockchainVentures recently sold 80% of the shares of PolySign. Blockchain.com participated in the US $53 million round B financing of this infrastructure start-up in 2021. According to the source, the company is still actively seeking to raise more funds, even if the valuation is significantly reduced, and hopes to provide debt warrants.

Interpretation of this information:

The news came out that Blockchain.com is making efforts to liquidate some of its assets in order to offset its risk exposure to Three Arrows Capital (3AC) of US $270 million. To achieve this, the company’s venture capital wing – BlockchainVentures – has sold 80% of their shares in PolySign, an infrastructure start-up that secured a significant $53 million round B funding from Blockchain.com in 2021.

According to reliable sources, Blockchain.com is still seeking to raise additional funds, regardless of a possible reduction in valuation, and intends to offer debt warrants to potential investors. While the company has not shared many details regarding the sale, the move seems to indicate that Blockchain.com is taking steps to manage its risk and exposure, particularly with respect to its 3AC investment.

It should be noted that Blockchain.com and 3AC enjoyed a fruitful relationship before this revelation, culminating in a significant investment from 3AC. However, the market volatility of recent times seems to have taken its toll, leaving Blockchain.com looking for ways to stem its exposure to the investment. That said, the sale of PolySign shares, and the ongoing search for more funding, could also be a reflection of new strategic moves the company is making towards the future, in line with its overall vision and mission.

In summary, Blockchain.com is looking to sell assets to cover their exposure to 3AC of US $270 million. To do so, BlockchainVenture sold 80% of their shares in PolySign, a start-up that had previously been funded by Blockchain.com. While the sale indicates the company is taking steps to manage risk, it also suggests a strategic move towards new opportunities. Additionally, the company is still seeking to raise more funds, despite the potential for valuation reduction, and hopes to offer debt warrants to potential investors.